Shares of electric vehicle (EV) maker VinFast Auto (NASDAQ: VFS) were on the move on Monday after the company announced it will offer a new in-car streaming service from Sony — and after the White House said it will sharply hike tariffs on EVs from rival automakers in China.
As of 10:30 a.m. ET, VinFast’s shares were up about 11% from Friday’s closing price.
A deal with Sony and a Biden move that could help VinFast
VinFast said late on Friday that it will be the first automaker to adopt Sony’s new in-car entertainment service, called RIDEVU. The Vietnamese automaker will offer RIDEVU on its VF 8 electric crossover SUV, the company said. Existing U.S. VF 8 owners who register for the service will receive it soon via an over-the-air update.
RIDEVU offers a library of over 2,000 movies from the Sony Pictures archives. The movies can be watched on the vehicle’s main screen when it’s parked (for instance, when it’s charging), and on mobile devices used by passengers while the car is in motion.
Separately on Friday, The Wall Street Journal reported that the Biden administration is preparing to raise tariffs on clean-energy goods from China, including electric vehicles. Per the report, tariffs on Chinese-made EVs will rise to roughly 100% from the current 25% under the administration’s plan.
Why the tariffs on China EVs may boost VinFast
VinFast makes its EVs in Vietnam, where it has cost advantages roughly similar to those of its Chinese rivals. But because Vietnam isn’t China, its vehicles won’t be affected by the administration’s planned move — which, if implemented, is likely to keep highly regarded Chinese-made EVs from companies like Nio and Xiaomi out of the U.S. market altogether for the time being.
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Why VinFast Stock Is Surging Today was originally published by The Motley Fool
Source: finance.yahoo.com